New Laws Coming in 2020

Life After Death for your Money Judgment

Life After Death for your Money Judgment

by Matt Burns

In various literary and artistic works, you can find a reoccurring theme of “life after death.”  In Michigan, judgments can work in the same manner.  It is important to understand how this concept works, especially if you are trying to collect on a judgment that would otherwise be void due to the 10 year Statute of Limitations having run on the judgment.


In Michigan any judgment expires after a period of 10 years.  This means that the terms of that judgment become unenforceable and an aggrieved party may have no legal recourse to seek the relief that was originally granted in the judgment, whether for money, services, or other results.  However, when it comes to the collection of money judgments there is a way for a judgment to survive in life after its 10-year death.


The Michigan Court of Appeals has determined that if a defendant is making payments on a judgment, those payments will toll the 10-year Statute of Limitations.  Tolling is the legal term for pausing or delaying the start of a timeline.   An example of this would be that Steve has a judgment against Bob.  This judgment is entered in June of 2010.  Under the basic rule of Statute of Limitations for expiration of a judgment, the judgment would expire in June of 2020.  However, if Bob was making payments on that money judgment through June of 2015, the new expiration date is now June of 2025. 


All of this means that if you have a money judgment for yourself or your business, do not despair if your judgment is beyond ten years old as there may be a way that you can continue collecting even after the original expiration date of the judgment.  Our firm has done so in the past and can help you do so as well.


In various literary and artistic works, you can find a reoccurring theme of “life after death.”  In Michigan, judgments can work in the same manner.  It is important to understand how this concept works, especially if you are trying to collect on a judgment that would otherwise be void due to the 10 year Statute of Limitations having run on the judgment.


In Michigan any judgment expires after a period of 10 years.  This means that the terms of that judgment become unenforceable and an aggrieved party may have no legal recourse to seek the relief that was originally granted in the judgment, whether for money, services, or other results.  However, when it comes to the collection of money judgments there is a way for a judgment to survive in life after its 10-year death.


The Michigan Court of Appeals has determined that if a defendant is making payments on a judgment, those payments will toll the 10-year Statute of Limitations.  Tolling is the legal term for pausing or delaying the start of a timeline.   An example of this would be that Steve has a judgment against Bob.  This judgment is entered in June of 2010.  Under the basic rule of Statute of Limitations for expiration of a judgment, the judgment would expire in June of 2020.  However, if Bob was making payments on that money judgment through June of 2015, the new expiration date is now June of 2025. 


All of this means that if you have a money judgment for yourself or your business, do not despair if your judgment is beyond ten years old as there may be a way that you can continue collecting even after the original expiration date of the judgment.  Our firm has done so in the past and can help you do so as well.